Anti-Temu and Shein regulation popular with UK shoppers

Many online retailers across the UK have, over the past few years, come up against near-insurmountable competition in the form of ultra-cheap goods flowing into the country from Chinese platforms like Shein and Temu. 

Even big brands aren’t safe; some have had products copied by manufacturers active on these platforms, and then sold for much lower prices. Others have found themselves outbid for paid space on search engines and caught in constant copyright battles.

Whatever you think of these platforms and the quality of their goods, they are making it harder and harder for UK-based online stores to compete. They may have a lifeline, though, in the form of consumer preference; turns out, the vast majority of shoppers want them reigned in.

High support for regulating Temu and Shein imports

The Retail Technology Show (RTS) recently surveyed around 1000 UK shoppers, and found that more than half (54%) said that they supported the Government’s proposed changes to the de minimis threshold, which would prevent the current volumes of ultra-cheap products from flooding the market as they do at present.

Interestingly, this figure went up to 68% for Gen Z, who order the most products from Shein and Temu. As the Guardian reported in September, a third of women aged 16 to 24 buy their clothing from Shein, while RTS themselves found that almost half (45%) of the shoppers they surveyed said they’d shopped at one of the Chinese ecommerce giants over the past twelve months. 

Whether regulation would actually lead people to shop with “homegrown” brands in practice is a different question. Gaps could, of course, emerge between stated buying intentions and the reality of people’s shopping habits. 

For instance, audit, tax and consulting business RSM revealed in its December study of Gen Z shopping habits that 43% of those surveyed “have an aspirational intention where they care about sustainability but will compromise when considering cost or convenience.” 

Considering the stranglehold Temu and Shein have on ecommerce, the results still signify a step in the right direction. The findings suggest that consumers are at least aware of the impact on home-grown businesses. 

“There’s no denying that the lure of ultra-low-priced goods will appeal to squeezed consumers as downward pressure on household budgets continues to suppress spending,” said Matt Bradley, Founder & Event Director of RTS, quoted in Retail Rewired.

“But while consumers want access to competitively priced goods, they also want to support home-grown retail brands”, he adds.

De minimis discussions ongoing

The data will be an interesting addition to the ongoing debate over whether scrapping the De Minimis rule will bolster or undermine SMEs.

The current customs duty sees low-value imports worth under £135 exempt from duty costs on their way into the UK. However, following a move in the US to scrap this rule, the UK Government is investigating whether a change would be beneficial here, too. 

While many are welcoming this potential move, claiming it will “level the playing fields”, the British Chambers of Commerce (BCC) warned earlier this month that removing it could push small ecommerce businesses and online stores to increase prices for customers.

While raised after the Autumn Budget last year, implementation has been delayed until March 2029 at the earliest, which leaves plenty of time for debate.

What should online retailers do now?

Retailers will continue to have to fight competition from massive platforms like Temu and Shein. In the current economic climate, these platforms will have a unique and in-demand appeal, simply because they offer prices that most SMEs simply can’t compete with. 

However, one thing business owners can do is emphasise their home-grown credentials and work to build relationships with customers based on their local appeal and the quality that they offer. 

While someone half the way across the world might be able to make something that looks a bit like one of your products, it won’t match the production value – and if that’s the case, you should let your customers know.